We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allstate (ALL) on Track to Sell Property to Reduce Expenses
Read MoreHide Full Article
The Allstate Corporation (ALL - Free Report) recently entered into an agreement to divest the property that constitutes the majority of its Northbrook, IL for around $232 million. This deal is expected to close next year.
The insurance giant took this step as part of its changing work patterns and cost-reducing measures.
Dermody Properties, a Nevada-based industrial developer, has agreed to buy the property.
Rationale Behind the Deal
Ever since the pandemic has hit the nation, companies are witnessing alterations in working patterns. Many employees are still choosing to work from home because of the flexibility. This divestiture will help Allstate lower its real-estate costs and boost its multi-year Transformative Growth measure. This deal is expected to expand ALL’s personal property-liability market share.
Allstate continues to make several cost-cutting efforts and the latest move is a part of the same strategy. These measures are likely to drive ALL’s margins in the days ahead.
The insurer moved to the Northbrook site in 1967. The campus right now consists of a 2-million square feet office space on Sanders Road in Northbrook. Allstate looks forward to transforming it into a low-cost insurer with broad distribution with the closure of the deal.
Nevertheless, ALL intends to maintain a significant presence in the Chicago area. However, the portion of the property to be excluded through the deal remains undisclosed.
Allstate completed the sale of Allstate Life Insurance Company of New York last month. The move was in line with the insurer's long-term growth strategy to deploy capital out of lower-growth and return businesses and instead, focus on growing its market share in personal property-liability and expand protection solutions for customers.
ALL currently holds a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the insurance space are Aflac Incorporated (AFL - Free Report) , RLI Corp. (RLI - Free Report) and ProAssurance Corporation (PRA - Free Report) , each stock currently carrying a Zacks Rank #2 (Buy).
Aflac is a general business holding company and oversees the operations of its subsidiaries by providing management services and making capital available. AFL managed to deliver a trailing four-quarter surprise of 18.32%. The stock has rallied 24.6% in the past year.
RLI Corp. is a specialty property-casualty (P&C) underwriter that caters primarily to the niche markets through its main operating subsidiary RLI Insurance Company. Shares of RLI have gained 6.4% in the past year. RLI’s earnings managed to surpass estimates in all the trailing four quarters, the average being 39.84%.
ProAssurance operates as a holding company for many property and casualty insurance companies. PRA came up with a trailing four-quarter average of 233.34%. The stock has surged 43.5% in a year’s time.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Allstate (ALL) on Track to Sell Property to Reduce Expenses
The Allstate Corporation (ALL - Free Report) recently entered into an agreement to divest the property that constitutes the majority of its Northbrook, IL for around $232 million. This deal is expected to close next year.
The insurance giant took this step as part of its changing work patterns and cost-reducing measures.
Dermody Properties, a Nevada-based industrial developer, has agreed to buy the property.
Rationale Behind the Deal
Ever since the pandemic has hit the nation, companies are witnessing alterations in working patterns. Many employees are still choosing to work from home because of the flexibility. This divestiture will help Allstate lower its real-estate costs and boost its multi-year Transformative Growth measure. This deal is expected to expand ALL’s personal property-liability market share.
Allstate continues to make several cost-cutting efforts and the latest move is a part of the same strategy. These measures are likely to drive ALL’s margins in the days ahead.
The insurer moved to the Northbrook site in 1967. The campus right now consists of a 2-million square feet office space on Sanders Road in Northbrook. Allstate looks forward to transforming it into a low-cost insurer with broad distribution with the closure of the deal.
Nevertheless, ALL intends to maintain a significant presence in the Chicago area. However, the portion of the property to be excluded through the deal remains undisclosed.
Allstate completed the sale of Allstate Life Insurance Company of New York last month. The move was in line with the insurer's long-term growth strategy to deploy capital out of lower-growth and return businesses and instead, focus on growing its market share in personal property-liability and expand protection solutions for customers.
Price Performance
Shares of Allstate have gained 8.5% in the past year, outperforming its industry’s growth of 8.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
ALL currently holds a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the insurance space are Aflac Incorporated (AFL - Free Report) , RLI Corp. (RLI - Free Report) and ProAssurance Corporation (PRA - Free Report) , each stock currently carrying a Zacks Rank #2 (Buy).
Aflac is a general business holding company and oversees the operations of its subsidiaries by providing management services and making capital available. AFL managed to deliver a trailing four-quarter surprise of 18.32%. The stock has rallied 24.6% in the past year.
RLI Corp. is a specialty property-casualty (P&C) underwriter that caters primarily to the niche markets through its main operating subsidiary RLI Insurance Company. Shares of RLI have gained 6.4% in the past year. RLI’s earnings managed to surpass estimates in all the trailing four quarters, the average being 39.84%.
ProAssurance operates as a holding company for many property and casualty insurance companies. PRA came up with a trailing four-quarter average of 233.34%. The stock has surged 43.5% in a year’s time.